Clive Palmer's Townsville refinery could have survived the drop in nickel prices if millions of dollars had not been shifted from it to the federal MP's other businesses, administrators say.

The comments from FTI Consulting followed the release of its report, which recommended winding up the Townsville-based operation which will be referred to the corporate watchdog ASIC.

Key points:

Creditors to vote on whether to liquidate Queensland Nickel, after administrators recommend it

Company owes about $74 million to sacked workers

Report says vintage cars were bought using QN bank account, which was never repaid

FTI Consulting pointed to a possible breach of fiduciary and common law duties by a director or officer of the company and criticised Mr Palmer and his nephew and former QN director Clive Mensink for being "reckless".

Sacked workers are owed $74 million, and if creditors agree to liquidate the company at a vote later this month, the workers may only see up to 52 per cent of the money paid out.

Federal assistance, however, would be available.

Mr Mensink still claims he is owed more than $270,000 in employee entitlements, and Mr Palmer $2.66 million for "outstanding loans".

The review said winding up of the company "appears to be the most viable option for creditors".

"At a very high level, we saw Queensland Nickel as what I'd say the piggy bank, the treasury ... the money was coming through Queensland Nickel and it was being dissipated amongst the Palmer empire entities as to where it was required," administrator John Park said.

"Our observations indicate Mr Palmer, a former director of the company, appears to have acted as a shadow/de facto director of QN at all material times from February 2012 up to the date of our appointment on 18 January 2016 [excluding any tenure as appointed director]," the report said.

Speaking on RN Drive, Mr Palmer said he made decisions about expenditure as a member of a joint venture committee.

"Under the joint venture agreement I've got the power and authority to tell Queensland Nickel what to do every minute of the day if I want to," he said.

QN money spent on cars, hotels, PUP

The report said that on November 29, 2012, Mr Palmer instructed QN to transfer $43 million out of the company to a number of entities, including nearly $15 million to himself.

It also found that between August 2012 and June 2013 QN paid for 60 vintage cars, which ended up at Mr Palmer's Coolum resort's Motorama Museum.

They were then sold to Mr Palmer for $5 million, but the loan forgiven in 2015.

QN also made a payment on Mr Palmer's Titanic II project.

A total of $21.5 million of the company's money went to the Palmer United Party since 2013, causing "detriment" to QN and creditors.

In April 2010, QN also purchased the Avica Resort on the Gold Coast for $11.55 million.

While QN had intended to use it for its headquarters, it was then sold to Mr Palmer in 2013 for $7.9 million, the report said.

"Both Mr Mensink and Mr Palmer, in our view, appear to have been reckless, in exercising their duties and powers as Directors of QN," the report said.

"Ultimately, the determination of whether the Directors have breached their duties will be made by a court."

Prime Minister Malcolm Turnbull said the report could be the death knell for Mr Palmer's political career as federal MP for the Sunshine Coast seat of Fairfax.

"I would say, assuming he renominates, I think the electors of Fairfax will cast a very stern judgement on him," he said.

Palmer: Not my decision to delay entitlements

Mr Palmer said it was the administrators, not him, who decided not to pay workers' entitlements.

"This is a great scandal, misreported in the press right across the country, that I made a decision not to pay workers' entitlements. That is complete rubbish."

The FTI Consulting report also appointed independent environmental consultants to evaluate the refinery which went into voluntary administration three months ago.

It identified "a number of areas of current non-compliance and identified that past external environmental audits had noted 15 minor non-compliance areas, which if left unattended could evolve into major issues".